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Shalfa Facilities Management is planning to offer a 15% stake in an IPO on the Nomu parallel market, according to the offering’s prospectus (pdf). The Riyadh-based waste management company lined up the Capital Market Authority’s approval for the move in June.
This is a secondary share sale: The offered shares will be sold by the three substantial shareholders — Mohamed Abdullah Ibrahim, Abdullah Mohamed Ibrahim, and Fahd Mohamed Ibrahim — who each own a third of the company’s 4.2 mn shares. The trio will see their collective stake reduced to 85% post-IPO, with each partner holding 28.3% of the company.
Subscription details and timeline: Qualified investors can put down orders for the IPO between Sunday, 20 October to Monday, 28 October, with the final allocation set for Thursday, 31 October. Any excess subscription fees will be refunded by Monday, 4 November. Investors can book a maximum of 210k shares and a minimum 10 shares a piece. The exact trading date will be announced at a later time.
Use of proceeds + lock-up period: Proceeds from the sale will go directly to the selling shareholders, after some SAR 2.5 mn are used to cover IPO-related expenses. Major shareholders are restricted from selling their shareholdings for a 12-month period beginning with the start of trading.
About Shalfa: Founded in 2008 in Riyadh, Shalfa specializes in facility management solutions, environmental services, project management, and related commercial activities. The company’s operations include a wide range of services, such as running wastewater treatment networks and facilities, municipal waste and recycling material collection, transportation of hazardous and municipal waste, hazardous waste treatment and disposal, building maintenance, cleaning services, and road cleaning.
ADVISORS- Value Capital is the financial advisor and lead manager for the IPO. The receiving agents are Al Rajhi Capital, Albilad Capital, Riyad Capital, SNB Capital, Alistithmar Capital, Alinma Investment, AlJazira Capital, ANB Capital, SAB Invest, Derayah Financial, Saudi Fransi Capital, Alkhabeer Capital, Yaqeen Capital, and Sahm Capital.
